Insurance in Kenya

Insurance in Kenya

This article delves into the landscape of insurance in Kenya, exploring its history, regulatory framework, insurance companies, brokers, along with the challenges and opportunities that shape its trajectory.

Contents:

Insurance Companies in Kenya

There are total of 63 insurance companies in Kenya licensed to operate insurance business in the country in 2023. This list includes insurance companies, micro-insurance companies and reinsurance companies. We have highlighted reinsurance companies by bold letters in the list below:

  1. AAR Insurance Company Limited
  2. ABSA Life Assurance Kenya Limited
  3. Africa Merchant Assurance Company Limited
  4. AIG Kenya Insurance Company Limited
  5. APA Insurance Limited
  6. APA Life Assurance Limited
  7. Britam General Insurance Company (K) Limited
  8. Britam Life Assurance Company (K) Limited
  9. Cannon General Insurance Company Limited
  10. Cannon Life Assurance (K) Limited
  11. Capex Life Assurance Company Limited
  12. CIC General Insurance Limited
  13. CIC Life Assurance Limited
  14. Continental Reinsurance Limited
  15. Corporate Insurance Company Limited
  16. Directline Assurance Company Limited
  17. East Africa Reinsurance Company Limited
  18. Equity Life Assurance (Kenya) Limited
  19. Fidelity Shield Insurance Company Limited
  20. First Assurance Company Limited – General
  21. GA Insurance Limited
  22. GA Life Assurance Limited
  23. Geminia Insurance Company Limited
  24. Geminia Life Insurance Company Limited
  25. Ghana Reinsurance Company (Kenya) Limited
  26. Healthier (K) Micro Insurance Limited
  27. ICEA LION General Insurance Company Limited
  28. ICEA LION Life Assurance Company Limited
  29. Intra Africa Assurance Company Limited
  30. Invesco Assurance Company Limited
  31. Jubilee Allianz General Insurance Ltd.
  32. Jubilee Health Insurance Limited
  33. Jubilee Life Insurance Limited
  34. Kenindia Assurance Company Limited
  35. Kenya Orient Insurance Limited
  36. Kenya Orient Life Assurance Limited
  37. Kenya Reinsurance Corporation Limited
  38. Kuscco Mutual Assurance Limited
  39. Liberty Life Assurance Kenya Limited
  40. Madison General Insurance Kenya Limited
  41. Madison Life Assurance Kenya Limited
  42. Mayfair Insurance Company Limited
  43. MUA Insurance (Kenya) Limited
  44. Occidental Insurance Company Limited
  45. Old Mutual General Insurance Kenya Limited
  46. Old Mutual Life Assurance Kenya Limited
  47. Pacis Insurance Company Limited
  48. Pioneer Assurance Company Limited
  49. Pioneer General Insurance Limited
  50. Prudential Life Assurance Kenya Limited
  51. Sanlam General Insurance Company Limited
  52. Sanlam Life Insurance Limited
  53. Star Discover Insurance Limited
  54. Star Discover Life Insurance Limited
  55. Takaful Insurance of Africa Limited
  56. Tausi Assurance Company Limited
  57. The Heritage Insurance Company Limited
  58. The Kenyan Alliance Insurance Company Limited
  59. The Monarch Insurance Company Limited
  60. Trident Insurance Company Limited
  61. WAICA Reinsurance (Kenya) Limited
  62. Xplico Insurance Company Limited

Insurance Brokers in Kenya

Below is the list of insurance brokers licensed to operate in Kenya for year 2023. This list doesn’t include reinsurance brokers.

  1. AA Insurance Brokers Limited
  2. Abc Insurance Brokers Limited
  3. Aboo Insurance Brokers Limited
  4. Acentria Insurance Brokers Limited
  5. Acropolis Insurance Brokers Limited
  6. Acuity Insurance Brokers Limited
  7. Aero Smart Insurance Brokers Limited
  8. Afrishield Insurance Brokers Limited
  9. Al-Amin Insurance Brokers Limited
  10. Allicom Insurance Brokers Limited
  11. Allion Insurance Brokers Limited
  12. Alpine Insurance Brokers Limited
  13. Alternate Insurance Brokers Limited
  14. Amana Insurance Brokers Limited
  15. Amro Insurance Brokers Limited
  16. Ams Insurance Brokers Limited
  17. Apis Insurance Brokers Limited
  18. A-Plan Insurance Brokers Limited
  19. Arena Africa Insurance Brokers Limited
  20. Aris Insurance Brokers Limited
  21. Aristocrats Insurance Brokers Limited
  22. Artha Insurance Brokers Limited
  23. Aspen Insurance Brokers Limited
  24. Assured Insurance Brokers Limited
  25. Assurelink Insurance Brokers Limited
  26. Atlas Insurance Brokers Limited
  27. Aum Insurance Brokers Limited
  28. Avila Insurance Brokers Limited
  29. Avocet Insurance Brokers Limited
  30. Bafana Insurance Brokers Limited
  31. Bahari Insurance Brokers Limited
  32. Bapa Insurance Brokers Limited
  33. Batlex Insurance Brokers Limited
  34. Bental Insurance Brokers Limited
  35. Bilmax Insurance Brokers Limited
  36. Bluewood Insurance Brokers Limited
  37. Boma Insurance Brokers Limited
  38. Bottomry Insurance Brokers Limited
  39. Brighthouse Insurance Brokers Limited
  40. Broadcover Insurance Brokers Limited
  41. BTB Insurance Brokers Limited
  42. Busam Insurance Brokers Limited
  43. Canopy Insurance Brokers Limited
  44. Centaur Insurance Brokers Limited
  45. Chancery Wright Insurance Brokers Limited
  46. Channel Insurance Brokers Limited
  47. Chartwell Insurance Brokers Limited
  48. Chester Insurance Brokers Limited
  49. Clarion Insurance Brokers Limited
  50. Clarkson Insurance Brokers Limited
  51. Complete Solutions Insurance Brokers Limited
  52. Consolidated Insurance Brokers Limited
  53. Covermax Insurance Brokers Limited
  54. Crescent Insurance Brokers Limited
  55. Crownscope Insurance Brokers Limited
  56. D & G Insurance Brokers Limited
  57. Disney Insurance Brokers Limited
  58. Dovenest Insurance Brokers Limited
  59. Dynamique Insurance Brokers Limited
  60. Eagle Africa Insurance Brokers Kenya Limited
  61. Eden Rock Insurance Brokers Limited
  62. Einsurance Brokers Limited
  63. Emaar Insurance Brokers Limited
  64. Ensign Insurance Brokers Limited
  65. Entreplat Insurance Brokers Limited
  66. Enwealth Insurance Brokers Limited
  67. Etg Insurance Brokers Limited
  68. Executive Insurance Brokers Limited
  69. Fairsure Insurance Brokers Limited
  70. Farelane Insurance Brokers Limited
  71. FCB Takaful (Insurance) Brokers Limited
  72. First Accord Insurance Brokers Limited
  73. First American Insurance Brokers Limited
  74. Font Insurance Brokers Limited
  75. Formax Insurance Brokers Limited
  76. Fortress Insurance Brokers Limited
  77. Fortune Insurance Brokers Limited
  78. Four M Insurance Brokers Limited
  79. Four Stars Insurance Brokers Limited
  80. Fredblack Insurance Brokers Limited
  81. Gachichio Insurance Brokers Limited
  82. Getrio Insurance Brokers Limited
  83. Goldfield Insurance Brokers Limited
  84. Grail Insurance Brokers Limited
  85. Gras Savoye Kenya Insurance Brokers Limited
  86. Grm Insurance Brokers Limited
  87. H. G. Thanawalla Insurance Brokers Limited
  88. H. S. Jutley Insurance Brokers Limited
  89. Habari Insurance Brokers Limited
  90. Harmony Insurance Brokers Limited
  91. Hawk Bay Insurance Brokers Limited
  92. Hillcroft Insurance Brokers Limited
  93. Hillspan Insurance Brokers Limited
  94. Hillstone Insurance Brokers Limited
  95. Hp Insurance Brokers Limited
  96. Ick Insurance Brokers Limited
  97. Image Insurance Brokers Limited
  98. Imoth Insurance Brokers Limited
  99. Insco Insurance Brokers Limited
  100. Integrated Insurance Brokers Limited
  101. Inter-Oceans Insurance Brokers Limited
  102. Ivari Africa Insurance Brokers Limited
  103. J W Seagon Insurance Brokers (Kenya) Limited
  104. Johncele Insurance Brokers Limited
  105. Karen Direct Insurance Brokers Limited
  106. Karen Insurance Brokers Limited
  107. Kelon Insurance Brokers Limited
  108. Kenbright Insurance Brokers Limited
  109. Kenfident Insurance Brokers Limited
  110. Ksembi Insurance Brokers Limited
  111. Kwatro Insurance Brokers Limited
  112. Lalit Sodha Insurance Brokers Limited
  113. Landmark Insurance Brokers Limited
  114. Laser Insurance Brokers Limited
  115. Lema Insurance Brokers Limited
  116. Liaison Group (Insurance Brokers) Limited
  117. Lifecare International Insurance Brokers Limited
  118. Losagi Insurance Brokers Limited
  119. Lucent Insurance Brokers Limited
  120. M. A. Khan Insurance Brokers Limited
  121. Macangira Insurance Brokers Limited
  122. Macly Insurance Brokers Limited
  123. Maj Insurance Brokers Limited
  124. Majani Insurance Brokers Limited
  125. Malee East Africa Insurance Brokers Limited
  126. Malfini Insurance Broker Limited
  127. Mega Health Insurance Brokers Limited
  128. Meister Insurance Brokers Limited
  129. Methodist Insurance Brokers Limited
  130. Mic Global Risks (Insurance Brokers) Limited
  131. Microensure Insurance Brokers Limited
  132. Midline Insurance Brokers Limited
  133. Mik Insurance Brokers Limited
  134. Millenium Insurance Brokers Limited
  135. Mima Insurance Brokers Limited
  136. Minerva Insurance Brokers Limited
  137. Minet Kenya Insurance Brokers Limited
  138. Miran Insurance Brokers Limited
  139. Mns Risk And Insurance Brokers Limited
  140. Modern Insurance Brokers Limited
  141. Mombasa Insurance Brokers Limited
  142. Nanyuki Insurance Brokers Limited
  143. Nck Insurance Brokers Limited
  144. Nelion Insurance Brokers Limited
  145. Newchapter Insurance Brokers Limited
  146. Niconat Insurance Brokers Limited
  147. Nile Capital Insurance Brokers (E.A) Limited
  148. Nirvana Africa Insurance Brokers Limited
  149. Nomura Insurance Brokers Limited
  150. Northlands Insurance Brokers Limited
  151. Northridge Insurance Brokers Limited
  152. Nyadwe Insurance Brokers Limited
  153. Octagon Insurance Brokers Limited
  154. Olea Kenya Insurance Brokers Limited
  155. Onepay Insurance Brokers Limited
  156. Options Insurance Brokers Limited
  157. Pacific Insurance Brokers (Ea) Limited
  158. Package Insurance Brokers Limited
  159. Paladin Insurance Brokers Limited
  160. Palsha Insurance Brokers Limited
  161. Peace Of Mind Insurance Brokers Limited
  162. Pelican Insurance Brokers (K) Limited
  163. Pistis Insurance Brokers Limited
  164. Plan & Place Insurance Brokers Limited
  165. Platinum Insurance Brokers Limited
  166. Policymart Insurance Brokers Limited
  167. Porim Insurance Brokers Limited
  168. Prime Mover Insurance Brokers Limited
  169. Primeken Insurance Brokers Limited
  170. Qijito Insurance Brokers Limited
  171. Reica Insurance Brokers Limited
  172. Reval Insurance Brokers Limited
  173. Richlands Insurance Brokers Limited
  174. Risk Care Insurance Brokers Limited
  175. Risk Shield Insurance Brokers Limited
  176. Risk Solutions Insurance Brokers Limited
  177. Roberts Insurance Brokers Limited
  178. Rolling Stones Insurance Brokers Ltd.
  179. Royal Associates Insurance Brokers Limited
  180. Safe N Sound Insurance Brokers Limited
  181. Safenet Insurance Brokers Limited
  182. Safir Global Insurance Brokers Limited
  183. Salmastar Insurance Brokers Limited
  184. Samnel Insurance Brokers Limited
  185. Sapon Insurance Brokers Limited
  186. Sasala Insurance Brokers Limited
  187. SC Insurance Brokers (K) Limited
  188. Scoreline Insurance Brokers Limited
  189. Sedgwick Kenya Insurance Brokers Limited
  190. Select And Protect Insurance Brokers Limited
  191. Shashi Insurance Brokers Limited
  192. Shiv Insurance Brokers Limited
  193. Snowcaps Insurance Brokers Limited
  194. Sobhag Insurance Brokers Limited
  195. Soin Insurance Brokers Limited
  196. Stansfeld Insurance Brokers Limited
  197. Stegrap Insurance Brokers Limited
  198. Sunland Insurance Brokers Limited
  199. Surex Insurance Brokers Limited
  200. Tebreisa Insurance Brokers Limited
  201. Teevee Insurance Brokers Limited
  202. The Great Five Insurance Brokers Limited
  203. Timaha Insurance Brokers Limited
  204. Transnep Insurance Brokers Limited
  205. Trisons Insurance Brokers Limited
  206. Trustmark Insurance Brokers Limited
  207. Umma Insurance Brokers Limited
  208. Unicorn Insurance Brokers Limited
  209. Unipolar Insurance Brokers Limited
  210. Universal Insurance Brokers Limited
  211. Utmost Insurance Brokers Limited
  212. Vb Insurance Brokers Limited
  213. Vefis Insurance Brokers (K) Limited
  214. Verge Insurance Brokers Limited
  215. Victoria Insurance Brokers Limited
  216. Vike Insurance Brokers Limited
  217. Viva 365 Insurance Brokers Limited
  218. Wakiba Insurance Brokers Limited
  219. Waumini Insurance Brokers Limited
  220. Zamara Risk & Insurance Brokers Limited

Reinsurance Brokers in Kenya

Below is the list of reinsurance brokers licensed to operate in Kenya for the year 2023:

  1. Acentria International Reinsurance Brokers Company Limited
  2. Aegis Re Brokers Limited
  3. Afro-Asian Reinsurance Brokers (Kenya) Limited
  4. Apex Reinsurance Brokers Limited
  5. Clarkson Reinsurance Brokerage Limited
  6. Eaglesbay International Reinsurance Brokers Limited
  7. Ellgeo Seagon Reinsurance Brokers Limited
  8. First Reinsurance Brokers Limited
  9. Fredblack Insurance Brokers Limited
  10. Global Bharat Reinsurance Brokers Ltd
  11. Global Reinsurance Brokers Limited
  12. Gras Savoye Kenya Insurance Brokers Limited
  13. Kenbright Reinsurance Brokers Limited
  14. Klapton Reinsurance Brokers Limited
  15. Liaison Re Limited
  16. Melech Reinsurance Brokers Limited
  17. Mic Reinsurance Brokers Limited
  18. Minet Kenya Insurance Brokers Limited
  19. Mnk Re Kenya Limited
  20. Modern Reinsurance Brokers Limited
  21. Nairobi Reinsurance Brokers Limited
  22. Nasco Btb Reinsurance Brokers Limited
  23. Nile Capital Reinsurance Brokers Kenya Limited
  24. Prestige Reinsurance Brokers Limited
  25. Safir Global Reinsurance Brokers Limited
  26. Unicorn Insurance Brokers Limited
  27. Willmars Reinsurance Brokers (E.A.) Limited
  28. Zamara Re-Insurance Brokers Limited

Medical Insurance Providers in Kenya

Apart from general insurance companies, following brokers and entities are also allowed to transact insurance business as Medical Insurance Provider for the year 2023 in Kenya

  1. Acropolis Insurance Brokers Limited
  2. Amana Insurance Brokers Limited
  3. Ams Insurance Brokers Limited
  4. Armchair Insurance Brokers Limited
  5. Bahari Insurance Brokers Limited
  6. BTB Insurance Brokers Limited
  7. Chancery Wright Insurance Brokers Limited
  8. Chester Insurance Brokers Limited
  9. Clarkson Insurance Brokers Limited
  10. Complete Solutions Insurance Brokers Limited
  11. Consolidated Insurance Brokers Limited
  12. Eagle Africa Insurance Brokers Kenya Limited
  13. Executive Healthcare Solutions Limited
  14. Goldfield Insurance Brokers Limited
  15. Goldstar Healthcare Limited
  16. Gras Savoye Kenya Insurance Brokers Limited
  17. H. S. Jutley Insurance Brokers Limited
  18. Healthline Solutions Limited
  19. Henner Kenya Limited
  20. Indemnity Insurance Brokers Limited
  21. J.W. Seagon And Company Limited
  22. Johncele Insurance Brokers Limited
  23. Karen Direct Insurance Brokers Limited
  24. Kenbright Healthcare Administrators Limited
  25. Laser Insurance Brokers Limited
  26. Liaison Healthcare Limited
  27. Lifecare International Insurance Brokers Limited
  28. Losagi Medical Insurance Brokers Limited
  29. Mic Global Risks (Insurance Brokers) Limited
  30. Minet Kenya Insurance Brokers Limited
  31. Miran Insurance Brokers Limited
  32. Mns Risk And Insurance Brokers Limited
  33. Modern Insurance Brokers Limited
  34. Mugen Medical Insurance Provider Limited
  35. Mutual Trust Insurance Brokers Limited
  36. Nile Capital Insurance Brokers (Ea) Limited
  37. Pacific Insurance Brokers (Ea) Limited
  38. Paladin Insurance Brokers Limited
  39. Pelican Insurance Brokers (K) Limited
  40. Plan & Place Insurance Brokers Limited
  41. Radiant Health Insurance Brokers Limited
  42. Royal Associates Insurance Brokers Limited
  43. Scoreline Insurance Brokers Limited
  44. Sedgwick Kenya Insurance Brokers Limited
  45. Sobhag Insurance Brokers Limited
  46. Trust Mark Insurance Brokers Limited
  47. Waumini Insurance Brokers Limited
  48. Zamara Risk & Insurance Brokers Limited

History of Insurance in Kenya

Colonial Impact on Insurance Business

The roots of insurance business in Kenya trace back to the colonial period during British rule. White settlers, primarily engaged in farming and agriculture, recognized the need to protect their investments against diverse risks. Consequently, they established insurance agencies to cater to the growing demand for insurance cover. Prudential, for instance, made a significant contribution by providing life insurance to Kenya in 1930 and establishing the East African Business center in Nairobi.

The earliest insurance companies, including Pioneer Assurance Society (1930), Jubilee Insurance Company (1937), Pan Africa Insurance (1946), and Provincial Insurance Company Limited (1949), were all owned by British insurers.

By the time of Kenya’s independence in 1963, these entities had evolved into full-fledged insurance companies, signifying the industry’s growth alongside the country’s development.

Pre-Independence Regulatory Landscape

Before independence, Kenya, like many developing countries, lacked specific insurance legislation. The Companies Act regulated insurance business during this period. However, in 1963, after gaining independence, Kenya recognized the need for dedicated legislation to control the growth of the insurance industry and contribute to the country’s economic development. The Insurance Ordinance of 1960 was enacted to regulate the establishment, financing, and operation of insurance companies.

Two policies formalized in 1994 and 1972 emphasized the importance of a robust national insurance and reinsurance market for economic growth. These policies aimed to reduce dependency on international insurers and re-insurers, leading to the enactment of the Insurance Act CAP 487 in 1986.

Post-Independence Growth and Regulation

Following independence, ownership of insurance companies shifted to the Kenyan government, which enacted the Insurance Act CAP 487 of 2010 to govern the insurance business. The top insurance companies in Kenya, according to a 2008 guide, include The British America Insurance Co (K) Ltd, UAP Provincial Insurance Co. Ltd, Pioneer Assurance Co. Ltd (an insurance broker), and C. I. C Cooperative Insurance Company of Kenya Ltd.

The regulatory framework for insurance in Kenya is currently structured around the Insurance Regulatory Authority (IRA) and the Association of Kenyan Insurers (AKI). The IRA, established in 2007, regulates, supervises, and develops the insurance industry. This marked a shift from the initial oversight provided by the Department of Insurance in the Ministry of Finance, highlighting a strategic response to enhance the efficiency and effectiveness of insurance regulation.

Key Segments of the Insurance Industry

General Insurance

General insurance, also known as non-life insurance, encompasses a broad spectrum of coverages that protect against risks such as accidents, property damage, liability, and more. In Kenya, general insurance is a vital component of the industry, serving individuals, businesses, and public entities.

Motor insurance, a mandatory requirement for vehicle owners, constitutes a significant portion of general insurance business. The coverage extends beyond basic third-party liability to comprehensive policies that offer protection against theft, accidents, and natural disasters. Additionally, property insurance, including home and business insurance, plays a crucial role in mitigating the financial impact of unforeseen events.

Life Insurance

Life insurance provides financial security to individuals and their families by offering protection against the uncertainties of life, including death, disability, and critical illness. The life insurance segment in Kenya has witnessed steady growth, driven by increased awareness of the need for long-term financial planning.

Term life insurance, whole life insurance, and endowment policies are among the products offered by life insurance companies in Kenya. These policies not only provide a safety net for beneficiaries but also serve as investment vehicles, offering policyholders a means of accumulating wealth over time.

Health Insurance

Health insurance has become increasingly important in Kenya as the cost of medical care rises. Health insurance policies cover medical expenses, hospitalization, and sometimes preventive care. Both individuals and employers recognize the value of health insurance in ensuring access to quality healthcare without bearing the full financial burden.

The Kenyan government has also taken steps to enhance health insurance coverage, with initiatives such as the National Hospital Insurance Fund (NHIF). The NHIF aims to make healthcare services more accessible to all Kenyan citizens, contributing to the overall improvement of public health.

Regulator

The regulatory framework governing the insurance sector in Kenya is overseen by the Insurance Regulatory Authority (IRA). Established in 1987 under the Insurance Act, the IRA is mandated to regulate, supervise, and develop the insurance industry. It ensures that insurance companies adhere to ethical standards, maintain financial stability, and protect the interests of policyholders. Besides, Association of Kenyan Insurers (AKI) too has some role in forming institutional and legal framework for insurance business.

One of the key functions of the IRA is to license and supervise insurance companies, intermediaries, and other players in the industry. The licensing process involves a thorough evaluation of an entity’s financial stability, governance structure, and capacity to meet its obligations. The IRA’s regulatory oversight extends to areas such as product development, pricing, and claims settlement to safeguard the interests of policyholders and maintain market integrity.

Challenges of Insurance Industry

While the insurance industry in Kenya has made significant strides, it faces several challenges that impact its growth and development. These challenges include:

  1. Low Insurance Penetration: Despite efforts to increase awareness, a significant portion of the Kenyan population remains uninsured or underinsured. This low insurance penetration is attributed to factors such as low income levels, lack of awareness, and a perception that insurance is not a priority.
  2. Fraudulent Activities: The insurance industry grapples with fraudulent activities, including false claims and misrepresentation. These activities not only lead to financial losses for insurance companies but also contribute to increased premiums for honest policyholders.
  3. Regulatory Compliance: The regulatory landscape, while essential for maintaining market integrity, can pose challenges for smaller insurance players. Compliance with regulatory requirements may require significant financial investments, impacting the competitiveness of some companies.
  4. Technological Adoption: The rapid pace of technological advancement presents both opportunities and challenges for the insurance industry. While technological innovations can enhance efficiency and customer experience, the industry must adapt quickly to stay ahead of emerging risks such as cyber threats.

Opportunities for Growth

Despite the challenges, the insurance industry in Kenya is poised for growth, driven by several opportunities:

  1. Innovative Product Development: There is ample room for the development of innovative insurance products that cater to the specific needs of the Kenyan market. Tailored solutions, such as microinsurance products and parametric insurance, have the potential to reach underserved segments of the population.
  2. Digital Transformation: Embracing digital technologies can revolutionize the way insurance products are distributed, underwritten, and serviced. Mobile platforms and digital payment systems offer convenient channels for reaching a wider audience, especially in regions with limited physical infrastructure.
  3. Collaboration and Partnerships: Collaboration between insurance companies, regulatory bodies, and other stakeholders can foster the growth of the industry. Partnerships with technology firms, healthcare providers, and agricultural organizations can lead to innovative solutions that address the evolving needs of consumers.
  4. Financial Inclusion Initiatives: Efforts to enhance financial inclusion, particularly in rural and low-income areas, can significantly expand the customer base for insurance products. Simplified insurance products, coupled with financial education, can encourage more individuals to embrace insurance as a risk management tool.

By overcoming the challenges and embracing these opportunities, insurance industry, with presence of significant number of institutions, can further foster.